NEW DELHI: The government will amend the cost audit rules under the companies law in order to ensure parity between financial and cost records. The corporate affairs ministry, which is implementing the Companies Act, has come out with a draft of the proposed amendments to the Cost Records and Audit rules. "Pursuant to implementation of Ind AS, the Companies (Cost Records and Audit) Rules, 2014 are to be amended to bring parity between financial records and cost records," the ministry said in a communication. Under the current rules, employee cost shall be ascertained taking into account the gross pay including all allowances payable along with the cost to the employer of all the benefits. In case of companies where Ind AS is applicable, any re- measurement of employee costs "recognised in other comprehensive income shall not form part of the employee cost", as per the draft rules.

Source: Economic Times August 13, 2017 06:11 UTC